Evaluation of Layout of Palm Oil Production Facilities at PT.ABC with Activity Relationship Chart (ARC) and Activity Relationship Diagram (ARD) Methods

Abstract

The success of an industry is a positive impact of integrating production factors and
management systems to be more effective and efficient. One of the determinants of an
industry's success is the layout, better known as the layout of the industry. Knowledge of these
includes work centres and equipment in the conversion process to optimize the relationship
between implementing officers, material flow, information flow, and procedures for achieving
goals. ABC company is one of the companies engaged in the processing of oil palm fruit to
produce various kinds of products that are useful for human food, beverages, agriculture,
industry, and so on. This study evaluates the layout of PT. ABC's production facilities,
utilizing an activity relationship chart and activity relationship diagram approach. Researchers
analyzed the data and obtained two factory facility layout designs, the 1st and 2nd
alternatives, ultimately selecting the latter. The chosen layout design is more organized and
supports the smooth running of production activities, providing significant advantages for the
company.